Is fundamental analysis redundant in the period straight after (2007 to2009) the Global Financial Crisis (GFC)?
Content
1. Introduction…………………………………………………………………………………. 2
2. Theory Assumption & methodology…………………………………………….. 2 2.1 Theory…………………………………………………………………………………….2 2.2 Cash flow model……………………………………………………………………..2 2.3 Qualitative factors…………………………………………………………………..2 2.4 Quantitative factors………………………………………………………………..3 2.5 financial statement…………………………………………………………………3
3. Application …………………………………………………………………………………. 5 3.1 Dow Jones ………………………………………………………………………….. 5 3.2 Company- Berkshire Hathaway INC…………………………............. 6 3.2.1 Total assets turnover ratio…………………………………………….. .7 3.2.2 Return on equity (ROE)……………………………………………….. 7 3.2.3 P/E ratio……………………………………………………………………….. 7 3.2.4 P/B ratio………………………………………………………………………. 7 3.2.5 Cash flow model…………………………………………………………… 7
4. Conclusion………………………………………………………………………………… 8
5. Reference…………………………………………………………………………………….. 9
Is fundamental analysis redundant in the period straight after (2007 to2009) the Global Financial Crisis (GFC)?
Introduction
Shortly after the stock market crash in 1929, as the first batch of financial experts in the Great Wall, Benjamin Graham and David Dodd firstly mentioned the concept in a book called security analysis: Based on public information that intelligent investors are able to analyse securities and determine whether the current price of stocks and bonds is over or below their intrinsic value. The Critical thinking and strong logic make this theory become the foundation of nearly all investments theories in Wall Street. Warren Buffett, John Neff, Peter Lynch and other famous investors become the best practitioners in fundamental analysis. This essay will firstly introduce the related theories of fundamental analysis. Secondly, the essay will explain free cash flow model to equity valuation and the qualitative and quantitative factors of fundamental analysis. Thirdly, choosing a
1. Introduction…………………………………………………………………………………. 2
2. Theory Assumption & methodology…………………………………………….. 2 2.1 Theory…………………………………………………………………………………….2 2.2 Cash flow model……………………………………………………………………..2 2.3 Qualitative factors…………………………………………………………………..2 2.4 Quantitative factors………………………………………………………………..3 2.5 financial statement…………………………………………………………………3
3. Application …………………………………………………………………………………. 5 3.1 Dow Jones ………………………………………………………………………….. 5 3.2 Company- Berkshire Hathaway INC…………………………............. 6 3.2.1 Total assets turnover ratio…………………………………………….. .7 3.2.2 Return on equity (ROE)……………………………………………….. 7 3.2.3 P/E ratio……………………………………………………………………….. 7 3.2.4 P/B ratio………………………………………………………………………. 7 3.2.5 Cash flow model…………………………………………………………… 7
4. Conclusion………………………………………………………………………………… 8
5. Reference…………………………………………………………………………………….. 9
Is fundamental analysis redundant in the period straight after (2007 to2009) the Global Financial Crisis (GFC)?
Introduction
Shortly after the stock market crash in 1929, as the first batch of financial experts in the Great Wall, Benjamin Graham and David Dodd firstly mentioned the concept in a book called security analysis: Based on public information that intelligent investors are able to analyse securities and determine whether the current price of stocks and bonds is over or below their intrinsic value. The Critical thinking and strong logic make this theory become the foundation of nearly all investments theories in Wall Street. Warren Buffett, John Neff, Peter Lynch and other famous investors become the best practitioners in fundamental analysis. This essay will firstly introduce the related theories of fundamental analysis. Secondly, the essay will explain free cash flow model to equity valuation and the qualitative and quantitative factors of fundamental analysis. Thirdly, choosing a